GST ALLOWS TO FILE THE REVOCATION APPLICATION OF CANCELLED GST REGISTRATION

GST ALLOWS TO FILE THE REVOCATION APPLICATION OF CANCELLED GST REGISTRATION

People have the golden opportunity to file the revocation application again for the same under the Removal of Difficulty scheme.

 

Goods and Service Tax department, on 6th August 2020, has issued an advisory for those people whose GST registration has been cancelled and a revocation application for that cancellation is also rejected. 


Background

  1. Goods & Service Tax Registration is mandatory for those business units whose estimated annual turnover is more than Rs. 40 Lakh. However, for some specific states, GST registration becomes applicable if the annual turnover exceeds Rs. 20 Lakh in a financial year. After the registration, the entities will be allotted with a unique GST number. GST number is a 15-digit alpha-numeric PAN-based unique code. 
     
  2. If the GST registration of any registered person gets cancelled by the proper officer on his own motion, then he can make the application to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order – as per section 30 of the  Central Goods and Services Act, 2017 (CGST Act).
     
Orders passed related to the filing of Revocation application for cancelled GST registration
  1. On 14th March 2020, the GST department had extended the period of application to file the revocation application for cancelled GST registration. As per the press release, if the GST registration has been cancelled till 14th March 2020, then the registered person can file the revocation application for the same till 30th June 2020. But the department has not issued any official notification for the same. So, none could file any revocation application.
     
  2. On 25th June 2020, Central Board of Indirect Taxes and Customs [CBIC] issued a ‘Removal of difficulty Order No. 01/2020’ related to the filing of revocation application for cancelled GST registration. As per the order if the taxpayer's registration has been cancelled till 12th August 2020, then they can file the revocation application. The deadline to file the application is 30th September 2020.
     
  3. The taxpayers after order no. 01/2020, could not file the revocation application due to restrictions on GST portal. Therefore, 0n 20th July 2020, the Goods and Services Tax Network (GSTN) issued an advisory that the revocation application can be filed through appeal. 
     
  4. As per the advisory, if the tax authorities have rejected the revocation application for cancelled GST registration before 12th June 2020, then, in this case, the taxpayer can file the revocation application under Removal of Difficulty order 01/2020 dated 25.06.2020. A request to pass an offline order for application restoration as an interim measure can be made to the appellate authority or the higher authority by the taxpayer. The jurisdictional authority has the power either to restore the revocation application for cancelled GST registration or reject the same. 
     
If the authority passes the order in favour of the taxpayer, then he/she has to login into the account, then:
  1. Click on Registration
  2. Then Restore Registration- 
  3. After that Restore Revocation. 
     

There, the taxpayer has to enter Application Reference Number (ARN) of the order and also required to upload a scanned copy of the order passed after selecting “Appeal in favour” option. 

In case the order is not passed in favour of the taxpayer, then there is no clarification regarding what the taxpayer should do next, for restoring their registration.
 

Fresh revocation application can be filed as per the new advisory of the GST

On 6th August 2020, the Goods and Services Tax Network (GSTN) Portal has issued an advisory. As per the advisory, the portal has enabled the functionality for filing

Revocation Application under Removal of Difficulty. As per this, the department has again provided the facility to the taxpayer to file the fresh revocation application if the cause of rejection of the application is one of the given reason:

  1. In case the revocation application for registration is rejected by the tax officer on or before 12th June 2020. 
  2. In case the taxpayer could not file the revocation application within 30 days of the cancellation of GST registration.
  3. If the taxpayer has filed an online or offline appeal for revocation of GST and the order is not yet passed with regards to it.  
     

Steps to make the fresh revocation application

In order to file the fresh revocation application, the taxpayer has to follow the given steps:

  • Login to GST account 
  • Go to services
  • Then click on the Registration option
  • After that file the revocation application by selecting the Application for Revocation option
     

Link of the advisory - https://www.gst.gov.in/newsandupdates/read/390
 

Conclusion

The taxpayers are advised do not waste a second and consult a professional who deals in such matters for restoring their GST registration.
 

Edited by Minu Mishra

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